* Adjusted EPS is a non-GAAP measure which adjusts EPS for the
temporary share increase in Q4 and Q3 2012 due to the Customer
Co-Investment Program.¹

Outlook

“2012 fourth-quarter and full year sales and profit came in as expected,
making the year our second best ever. The high level of sales was mainly
supported by the large 28-32 nanometer (nm) capacity investment made by
the Foundry industry, while Memory capacity investments represented only
25 percent of total net sales, never really picking up, as its major
driver, the PC business, shrunk compared to 2011. We plan net sales for
2013 at a similar level to that of 2012, with a slow Q1 start,
recovering in Q2 and a relatively large second half. This full-year
perspective is supported by two engines that are less dependent on
macroeconomic circumstances: Firstly, there is a strategic technology
transition need for very lithography-intensive 14-20 nm foundry and
logic nodes, which will enable the next generation portable products,
for which all semiconductor architecture leaders have designs pending
and need initial capacity. Secondly, ASML will ship its first NXE:3300B
EUV tool in Q2 targeting for a maximum of 11 potential shipments in
2013, representing a net sales value of around EUR 700 million. We are
encouraged by the latest EUV development performance as we have now
demonstrated a stable 40 Watts of EUV source power against a production
target of 105 Watts. Also, the source design was tested successfully at
up to 60 Watts for debris mitigation. Furthermore, the NXE:3300B first
system has shown good overlay and imaging performance. We expect the
DRAM and NAND Flash memory segments to continue investing at a minimum
level in 2013, generating an upside revenue opportunity for ASML if the
PC business picks up with good related Solid State Drive attach rates,”
said Eric Meurice, President and Chief Executive Officer of ASML.

For the first quarter of 2013, ASML expects net sales of about EUR 850
million, gross margin of about 38 percent, R&D costs of EUR 185 million,
other income of EUR 16 million which consists of contributions from
participants of the Customer Co-Investment Program and SG&A costs of EUR
63 million including EUR 6 million in expenses related to the pending
Cymer acquisition.

Fourth-Quarter Product Highlights

Our TWINSCAN NXT lithography system has achieved record matched
machine overlay of less than 4 nm, a 2 nm improvement.

Holistic Lithography continued to expand and integrated metrology and
feedback loops which enable shrink, reduce drift and improve yield
contributed to record sales from service and field options of EUR 257
million.

In our EUV program, our NXE:3100 pre-production systems have exposed a
cumulative total of more than 30,000 wafers at customer sites,
enabling successful recipe development for the sub-14 nm Logic and 22
nm DRAM nodes, which may soon lead to additional orders for production
systems for delivery targeted in 2014.

Imaging of the NXE:3300B, the system intended for high-volume
manufacturing, continues to improve, shows excellent results down to
14 nm. The first NXE:3300B customer system is in final stage of test
and qualification in our cleanroom in Veldhoven.

Progress towards an EUV light source powerful enough for high-volume
manufacturing has been encouraging and steady: We have seen in the
past quarter results from the first fully integrated EUV source with
stable full-field expose power of up to 40 Watts with good dose
control over extended time. This allows us to prepare initial
shipments of the NXE:3300B and gives us confidence in the ability to
implement improvements over time to power levels enabling 70 wafers
per hour at customers mid-2014.

For our new 450mm development program, ASML is expanding the design
team in line with the targeting of pre-production systems for 2016 and
production for 2018

Cash return programs

Due to ASML's strong financial position and operating cash flow
prospects, we intend to continue to return excess cash to shareholders
through increasing dividends and share buy back programs, thus
supporting our shareholders in their continued investment in ASML.

ASML intends to again increase the dividend by 15 percent compared with
last year. Therefore, we will submit a proposal to the 2013 Annual
General Meeting of Shareholders (AGM) to declare a dividend in respect
of 2012 of EUR 0.53 per ordinary share (for a total amount of
approximately EUR 215 million), compared with a dividend of EUR 0.46 per
ordinary share paid in respect of 2011. The proposed dividend represents
19.6 percent of earnings per share in 2012.

For regulatory reasons, ASML will not announce any new share buy back
program before Cymer’s Extraordinary General Meeting of Shareholders,
which will be held on 5 February 2013.

Additional information

In the fourth quarter, we announced the intended cash-and-stock
acquisition of lithographic light source supplier Cymer. As part of
the regulatory review process, clearance has been granted by the U.S.
Committee on Foreign Investment in the United States (CFIUS) and
German anti-trust authorities. We continue to expect the transaction
to close in the first half of 2013.

In the fourth quarter ASML released EUR 119.5 million of its liability
for unrecognized tax benefits after successful conclusion of tax
audits in different jurisdictions, which resulted in a net tax benefit
of EUR 115.8 million for the quarter. The release of the liability for
unrecognized tax benefits almost completely offsets the income tax due
over ASML’s earnings for the year.

SG&A of EUR 79.5 million reflected exceptional additional costs of EUR
14 million, related to the acquisition offer for Cymer.

About ASML

ASML is one of the world's leading providers of lithography systems for
the semiconductor industry, manufacturing complex machines that are
critical to the production of integrated circuits or chips.
Headquartered in Veldhoven, the Netherlands, ASML is traded on Euronext
Amsterdam and NASDAQ under the symbol ASML. ASML has 8,500 employees on
payroll (expressed in full time equivalents), serving chip manufacturers
in more than 55 locations in 16 countries. More information about our
company, our products and technology, and career opportunities is
available on our website: www.asml.com

Press Conference

A press conference hosted by CEO Eric Meurice and CFO Peter Wennink will
be held at our office in Veldhoven at 11:00 AM Central European Time /
05:00 AM Eastern U.S. time. To listen to the press conference, access is
available via www.asml.com

A presentation about 2012 fourth quarter and full year results is
available on www.asml.com

A conference call for investors and media will be hosted by CEO Eric
Meurice and CFO Peter Wennink at 15:00 PM Central European Time / 09:00
AM Eastern U.S. time. Dial-in numbers are: in the Netherlands + 31 20
531 5871 and the US +1 646 254 3367 (US participants will have to quote
the following confirmation code when dialing into the conference:
6663104). To listen to the conference call, access is also available via www.asml.com

A replay of the Investor and Media Call will be available on www.asml.com

2012 Annual Report

ASML will publish its 2012 annual report on Form 20-F, Statutory Annual
Report and Remuneration Report on 13 February 2013. The reports will be
published on our website at www.asml.com.

US GAAP and IFRS Financial Reporting

ASML's primary accounting standard for quarterly earnings releases and
annual reports is US GAAP, the accounting standard generally accepted in
the United States. Quarterly US GAAP consolidated statements of
operations, consolidated statements of cash flows and consolidated
balance sheets, and a reconciliation of net income and equity from US
GAAP to IFRS as adopted by the EU are available on www.asml.com

In addition to reporting financial figures in accordance with US GAAP,
ASML also reports financial figures in accordance with IFRS for
statutory purposes. The most significant differences between US GAAP and
IFRS that affect ASML concern the capitalization of certain product
development costs, the accounting of share-based payment plans, the
accounting of income taxes and the accounting of reversal of inventory
write-downs. ASML’s quarterly IFRS consolidated income statement,
consolidated statement of cash flows, consolidated statement of
financial position and a reconciliation of net income and equity from US
GAAP to IFRS are available on www.asml.com

The consolidated balance sheets of ASML Holding N.V. as of December 31,
2012, the related consolidated statements of operations and consolidated
statements of cash flows for the quarter ended December 31, 2012 as
presented in this press release are unaudited.

Regulated Information

This press release, the US GAAP consolidated financial statements, the
IFRS consolidated financial statements and the Statutory Interim Report
published on www.asml.com
comprise regulated information within the meaning of the Dutch Financial
Markets Supervision Act (Wet op het financieel toezicht).

Forward Looking Statements

“Safe Harbor” Statement under the US Private Securities Litigation
Reform Act of 1995: the matters discussed in this document may include
forward-looking statements, including statements made about our outlook,
including expected sales trends, expected shipments of tools,
productivity of our tools, purchase commitments, IC unit demand,
financial results, expected gross margin and expenses and statements
about our plans to return funds to our shareholders. These forward
looking statements are subject to risks and uncertainties including, but
not limited to: economic conditions, product demand and semiconductor
equipment industry capacity, worldwide demand and manufacturing capacity
utilization for semiconductors (the principal product of our customer
base), including the impact of general economic conditions on consumer
confidence and demand for our customers’ products, competitive products
and pricing, the impact of manufacturing efficiencies and capacity
constraints, the continuing success of technology advances and the
related pace of new product development and customer acceptance of new
products, our ability to enforce patents and protect intellectual
property rights, the risk of intellectual property litigation,
availability of raw materials and critical manufacturing equipment,
trade environment, changes in exchange rates, available cash,
distributable reserves for dividend payments and share repurchases,
risks associated with our co-investment program, including whether the
450mm and EUV research and development programs will be successful and
ASML’s ability to hire additional workers as part of the 450mm and EUV
development programs, our ability to successfully complete acquisitions,
including the Cymer transaction or the expected benefits of the Cymer
transaction and other risks indicated in the risk factors included in
ASML’s Annual Report on Form 20-F and other filings with the US
Securities and Exchange Commission.

The foregoing risk list of factors is not exhaustive. You should
consider carefully the foregoing factors and the other risks and
uncertainties that affect the business of ASML described in the risk
factors included in ASML's Annual Report on Form 20-F and other
documents filed by ASML from time to time with the SEC. ASML disclaims
any obligation to update the forward-looking statements contained herein.

Important Information for Investors and Stockholders

This communication does not constitute an offer to sell or the
solicitation of an offer to buy any securities or a solicitation of any
vote or approval. No offer of securities shall be made except by means
of a prospectus meeting the requirements of Section 10 of the Securities
Act of 1933, as amended. The proposed transaction will be submitted to
the stockholders of Cymer for their consideration. In connection with
the proposed transaction, Cymer has filed a proxy statement with the SEC
and ASML has filed a registration statement on Form F-4 with additional
information concerning the transaction, including a proxy
statement/prospectus. CYMER STOCKHOLDERS ARE ADVISED TO READ THESE
DOCUMENTS CAREFULLY AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC,
AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE
THEY WILL CONTAIN IMPORTANT INFORMATION. The proxy statement, the
registration statement, and other documents containing other important
information about Cymer and ASML filed or furnished to the SEC may be
read and copied at the SEC’s public reference room located at 100 F
Street, N.E., Washington, D.C. 20549. Information on the operation of
the Public Reference Rooms may be obtained by calling the SEC at
1-800-SEC-0330. The SEC also maintains a website, www.sec.gov,
from which any electronic filings made by ASML and Cymer may be obtained
without charge. In addition, investors and shareholders may obtain
copies of the documents filed with or furnished to the SEC upon oral or
written request without charge. Requests may be made in writing by
regular mail by contacting ASML at the following address: De Run 6501,
5504 DR, Veldhoven, The Netherlands, Attention: Investor Relations, or
by contacting Cymer at the following address: 17075 Thornmint Court, San
Diego, CA, 92127, Attention: Investor Relations, +1 858 385 6097.

Cymer and ASML and their respective directors, executive officers and
employees and other persons may be deemed to be participants in the
solicitation of proxies in respect of the transaction. Information
regarding Cymer’s directors and executive officers and their ownership
of Cymer common stock is available in Cymer’s proxy statement for its
2012 meeting of stockholders, as filed with the SEC of Schedule 14A on
April 11, 2012. Information about ASML’s directors and executive
officers and their ownership of ASML ordinary shares is available in its
Annual Report on Form 20-F for the year ended December 31, 2011 and is
available in the joint proxy statement/prospectus . Other information
regarding the interests of such individuals as well as information
regarding Cymer’s and ASML’s directors and officers is also set forth in
the proxy statement/prospectus. These documents can be obtained free of
charge from the sources indicated above.

1 Adjusted EPS is calculated using the weighted average
number of shares outstanding excluding the shares issued (in October and
November 2012) to the participants in the Customer Co-Investment
Program. EPS was calculated based on a weighted average basic number of
shares of 452,452 thousand in Q4, 422,516 thousand in Q3, and 424,096
thousand for the full year 2012. Adjusted EPS was calculated based on an
adjusted weighted average basic number of shares of 406,801 thousand in
Q4, 409,229 thousand in Q3, and 409,340 thousand for the full year
2012. No adjustments were made to net income in calculating Adjusted EPS.

ASML - Summary U.S. GAAP Consolidated Statements of Operations 1,2

Three months ended,

Twelve months ended,

Dec 31,

Dec 31,

Dec 31,

Dec 31,

2012

2011

2012

2011

(in millions EUR, except per share data)

Net system sales

766.5

992.7

3,801.6

4,883.9

Net service and field option sales

256.6

218.2

929.9

767.1

Total net sales

1,023.1

1,210.9

4,731.5

5,651.0

Total cost of sales

602.9

714.5

2,726.3

3,201.6

Gross profit

420.2

496.4

2,005.2

2,449.4

Research and development costs

155.4

150.4

589.1

590.3

Selling, general and administrative costs

79.5

56.3

259.3

217.9

Income from operations

185.3

289.7

1,156.8

1,641.2

Interest income (expense), net

(3.4)

1.5

(6.2)

7.4

Income before income taxes

181.9

291.2

1,150.6

1,648.6

Benefit from (provision for) income taxes

(3.7)

(6.5)

(96.8)

(181.6)

Benefit from release of liability for unrecognized tax benefits

119.5

4

-

92.5

4

-

Net income

297.7

284.7

1,146.3

1,467.0

Basic net income per ordinary share

0.66

0.69

2.70

3.45

Diluted net income per ordinary share

3

0.65

0.68

2.68

3.42

Weighted average number of ordinary shares used in computing per
share amounts (in millions):

Basic

452.5

415.6

424.1

425.6

Diluted

3

455.4

419.0

427.0

429.1

ASML - Ratios and Other Data 1,2

Three months ended,

Twelve months ended,

Dec 31,

Dec 31,

Dec 31,

Dec 31,

2012

2011

2012

2011

(in millions EUR, except otherwise indicated)

Gross profit as a percentage of net sales

41.1

41.0

42.4

43.3

Income from operations as a percentage of net sales

18.1

23.9

24.4

29.0

Net income as a percentage of net sales

29.1

23.5

24.2

26.0

Income taxes as a percentage of income before income taxes

(63.7)

4

2.3

0.4

4

11.0

Shareholders’ equity as a percentage of total assets

54.9

47.4

54.9

47.4

Sales of systems (in units)

34

41

170

222

Average selling price of system sales (EUR millions)

22.5

24.2

22.4

22.0

Value of systems backlog excluding EUV (EUR millions)

1,214

1,733

1,214

1,733

Systems backlog excluding EUV (in units)

46

71

46

71

Average selling price of systems backlog excluding EUV (EUR millions)

26.4

24.4

26.4

24.4

Value of booked systems excluding EUV (EUR millions)

667

710

3,312

2,909

Net bookings excluding EUV (in units)

32

37

144

134

Average selling price of booked systems excluding EUV (EUR millions)

20.9

19.2

23.0

21.7

Number of payroll employees in FTEs

8,497

7,955

8,497

7,955

Number of temporary employees in FTEs

2,139

1,935

2,139

1,935

ASML - Summary U.S. GAAP Consolidated Balance Sheets 1,2

Dec 31,

Dec 31,

2012

2011

(in millions EUR)

ASSETS

Cash and cash equivalents

1,767.6

2,731.8

Short-term investments

930.0

-

Accounts receivable, net

605.3

880.6

Finance receivables, net

265.2

78.9

Current tax assets

57.1

32.1

Inventories, net

1,857.0

1,624.6

Deferred tax assets

103.7

120.7

Other assets

246.0

238.1

Total current assets

5,831.9

5,706.8

Finance receivables, net

38.6

-

Deferred tax assets

39.4

38.7

Other assets

311.6

307.3

Goodwill

149.2

146.0

Other intangible assets, net

9.9

8.4

Property, plant and equipment, net

1,029.9

1,053.6

Total non-current assets

1,578.6

1,554.0

Total assets

7,410.5

7,260.8

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities

2,086.3

2,233.0

Long-term debt

755.9

733.8

Deferred and other tax liabilities

88.3

4

176.7

Provisions

8.0

10.0

Accrued and other liabilities

405.1

663.1

Total non-current liabilities

1,257.3

1,583.6

Total liabilities

3,343.6

3,816.6

Shareholders’ equity

4,066.9

3,444.2

Total liabilities and shareholders’ equity

7,410.5

7,260.8

ASML - Summary U.S. GAAP Consolidated Statements of Cash Flows 1,2

Three months ended,

Twelve months ended,

Dec 31,

Dec 31,

Dec 31,

Dec 31,

2012

2011

2012

2011

(in millions EUR)

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

297.7

284.7

1,146.3

1,467.0

Adjustments to reconcile net income to net cash flows from operating
activities:

Adjustments to reconcile net income to net cash flows from operating
activities:

Depreciation and amortization

43.5

36.7

56.8

49.6

40.1

Impairment

0.5

1.7

1.1

-

2.5

Loss on disposal of property, plant and equipment

0.2

0.5

1.2

0.3

1.2

Share-based payments

5.0

4.9

4.4

4.4

3.6

Allowance for doubtful receivables

(0.3)

0.5

0.1

0.2

0.5

Allowance for obsolete inventory

22.9

31.0

53.4

23.6

23.0

Deferred income taxes

(120.3)

4

25.6

0.7

21.6

27.6

Changes in assets and liabilities

(504.7)

113.7

(335.5)

13.9

(250.8)

Net cash provided by (used in) operating activities

(255.5)

489.3

74.1

395.6

132.4

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment

(35.7)

(50.2)

(38.8)

(47.2)

(93.8)

Purchase of intangible assets

(4.3)

-

-

(3.3)

-

Purchase of available for sale securities

(90.0)

(440.0)

(850.0)

-

-

Maturity of available for sale securities

200.0

250.0

-

-

-

Acquisition of subsidiaries (net of cash acquired)

(10.3)

-

-

-

-

Net cash provided by (used in) investing activities

59.7

(240.2)

(888.8)

(50.5)

(93.8)

CASH FLOWS FROM FINANCING ACTIVITIES

Dividend paid

-

-

(188.9)

-

-

Purchase of shares

(265.7)

(25.2)

(108.8)

(135.7)

(161.1)

Net proceeds from issuance of shares

840.7

3,046.5

4.2

16.3

8.0

Capital repayment

(3,728.3)

-

-

-

-

Repayment of debt

(0.8)

(0.7)

(0.7)

(0.7)

(0.7)

Tax benefit from share-based payments

0.6

1.5

-

0.1

-

Net cash provided by (used in) financing activities

(3,153.5)

3,022.1

(294.2)

(120.0)

(153.8)

Net cash flows

(3,349.3)

3,271.2

(1,108.9)

225.1

(115.2)

Effect of changes in currency rates on cash

(1.9)

(4.2)

7.3

(3.5)

8.9

Net increase (decrease) in cash and cash equivalents

(3,351.2)

3,267.0

(1,101.6)

221.6

(106.3)

Notes to the Summary U.S. GAAP Consolidated Financial Statements

Basis of Presentation

ASML follows accounting principles generally accepted in the United
States of America (“U.S. GAAP”). Further disclosures, as required under
U.S. GAAP in annual reports, are not included in the summary
consolidated financial statements. Unless stated otherwise, the
accompanying consolidated financial statements are stated in millions of
euros (‘EUR’).

Principles of consolidation

The consolidated financial statements include the financial statements
of ASML Holding N.V. and all of its subsidiaries and the variable
interest entities in which ASML is the primary beneficiary (together
referred to as “ASML” or the “Company”). Subsidiaries are all entities
over which ASML has the power to govern the financial and operating
policies generally accompanying a shareholding of more than one half of
the voting rights. All intercompany profits, balances and transactions
have been eliminated in the consolidation.

Use of estimates

The preparation of ASML’s consolidated financial statements in
conformity with U.S. GAAP requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
and the disclosure of contingent assets and liabilities on the balance
sheet dates, and the reported amounts of revenue and expenses during the
reported periods. Actual results could differ from those estimates.

Recognition of revenues

In general, ASML recognizes revenue when all four revenue recognition
criteria are met: persuasive evidence of an arrangement exists; delivery
has occurred or services have been rendered; seller’s price to buyer is
fixed or determinable; and collectability is reasonably assured. At
ASML, this policy generally results in revenue recognition from the sale
of a system upon shipment. The revenue from the installation of a system
is generally recognized upon completion of that installation at the
customer site. Each system undergoes, prior to shipment, a "Factory
Acceptance Test" in ASML’s cleanroom facilities, effectively replicating
the operating conditions that will be present on the customer's site, in
order to verify whether the system will meet its standard specifications
and any additional technical and performance criteria agreed with the
customer, if any. A system is shipped, and revenue is recognized, only
after all specifications are met and customer sign-off is received or
waived. In case not all specifications are met and the remaining
performance obligation is not essential to the functionality of the
system but is substantive rather than inconsequential or perfunctory, a
portion of the sales price is deferred. Although each system's
performance is re-tested upon installation at the customer's site, ASML
has never failed to successfully complete installation of a system at a
customer’s premises.

The main portion of ASML’s revenue is derived from contractual
arrangements with its customers that have multiple deliverables, which
mainly include the sale of our systems, installation and training
services and prepaid extended and enhanced (optic) warranty contracts.
For each of the specified deliverables ASML determines the selling price
by using either vendor specific objective evidence (‘VSOE’), third party
evidence (‘TPE’) or by best estimate of the selling price (‘BESP’). When
the Company is unable to establish relative selling price using VSOE or
TPE, the Company uses BESP in its allocation of arrangement
consideration. The total arrangement consideration is allocated at
inception of the arrangement to all deliverables on the basis of their
relative selling price. The revenue relating to the undelivered elements
of the arrangements is deferred at their relative selling prices until
delivery of these elements. Revenue from installation and training
services is recognized when the services are completed. Revenue from
prepaid extended and enhanced (optic) warranty contracts is recognized
over the term of the contract.

Foreign currency risk management

The Company uses the euro as its invoicing currency in order to limit
the exposure to foreign currency movements. Exceptions may occur on a
customer by customer basis. To the extent that invoicing is done in a
currency other than the euro, the Company is exposed to foreign currency
risk.

It is the Company’s policy to hedge material transaction exposures, such
as forecasted sales and purchase transactions and material net
remeasurement exposures, such as accounts receivable and payable. The
Company hedges these exposures through the use of foreign exchange
contracts.

As of December 31, 2012, shareholders’ equity includes EUR 4.9 million
gain (net of taxes: EUR 4.3 million gain; December 31, 2011: EUR 4.4
million loss) representing the total anticipated gain to be released to
sales, and EUR 6.0 million loss (net of taxes: EUR 5.3 million loss;
December 31, 2011: EUR 10.3 million gain) to be charged to cost of
sales, which will offset the EUR equivalent of foreign currency
denominated forecasted sales and purchase transactions.

ASML – Reconciliation U.S. GAAP – IFRS 1,2

Net income

Three months ended,

Twelve months ended,

Dec 31,

Dec 31,

Dec 31,

Dec 31,

2012

2011

2012

2011

(in millions EUR)

Net income based on U.S. GAAP

297.7

284.7

1,146.3

1,467.0

Development expenditures (see Note 1)

41.1

25.8

164.8

(2.2)

Share-based payments (see Note 2)

(1.4)

0.3

(1.0)

(0.3)

Reversal of write-downs (see Note 3)

(14.0)

3.4

(7.2)

4.6

Income taxes (see Note 4)

(2.6)

2.8

(0.6)

24.9

Net income based on IFRS

320.8

317.0

1,302.3

1,494.0

Shareholders’ equity

Dec 31,

Sep 30,

Jul 1,

Apr 1,

Dec 31,

2012

2012

2012

2012

2011

(in millions EUR)

Shareholders’ equity based on U.S. GAAP

4,066.9

6,905.7

3,595.5

3,612.0

3,444.2

Development expenditures (see Note 1)

396.8

356.6

308.7

267.3

233.0

Share-based payments (see Note 2)

4.1

4.1

4.0

3.7

2.7

Reversal of write-downs (see Note 3)

-

14.0

14.4

6.5

7.2

Income taxes (see Note 4)

30.4

35.0

36.4

31.4

32.7

Equity based on IFRS

4,498.2

7,315.4

3,959.0

3,920.9

3,719.8

Notes to the reconciliation from U.S. GAAP to IFRS

Note 1 Development expenditures

Under IFRS, ASML applies IAS 38, “Intangible Assets”. In accordance with
IAS 38, ASML capitalizes certain development expenditures that are
amortized over the expected useful life of the related product generally
ranging between one and three years. Amortization starts when the
developed product is ready for volume production.

Under U.S. GAAP, ASML applies ASC 730, “Research and Development”. In
accordance with ASC 730, ASML charges costs relating to research and
development to operating expense as incurred.

Note 2 Share-based Payments

Under IFRS, ASML applies IFRS 2, “Share-based Payments” beginning from
January 1, 2004. In accordance with IFRS 2, ASML records as an expense
the fair value of its share-based payments with respect to stock options
and stock granted to its employees after November 7, 2002. Under IFRS,
at period end a deferred tax asset is computed on the basis of the tax
deduction for the share-based payments under the applicable tax law and
is recognized to the extent it is probable that future taxable profit
will be available against which these deductible temporary differences
will be utilized. Therefore, changes in ASML’s share price do affect the
deferred tax asset at period-end and result in adjustments to the
deferred tax asset.

As of January 1, 2006, ASML applies ASC 718 “Compensation- Stock
Compensation” which requires companies to recognize the cost of employee
services received in exchange for awards of equity instruments based
upon the grant-date fair value of those instruments. ASC 718’s general
principle is that a deferred tax asset is established as we recognize
compensation costs for commercial purposes for awards that are expected
to result in a tax deduction under existing tax law. Under U.S. GAAP,
the deferred tax recorded on share-based compensation is computed on the
basis of the expense recognized in the financial statements. Therefore,
changes in ASML’s share price do not affect the deferred tax asset
recorded in our financial statements.

Note 3 Reversal of write-downs

Under IFRS, ASML applies IAS 2 (revised), “Inventories”. In accordance
with IAS 2, reversal of a prior period write-down as a result of a
subsequent increase in value of inventory should be recognized in the
period in which the value increase occurs.

Under U.S. GAAP, ASML applies ASC 330 “Inventory”. In accordance with
ASC 330 reversal of a write-down is prohibited as a write-down creates a
new cost basis.

Note 4 Income taxes

Under IFRS, ASML applies IAS 12, “Income Taxes” beginning from January
1, 2005. In accordance with IAS 12 unrealized net income resulting from
intercompany transactions that are eliminated from the carrying amount
of assets in consolidation give rise to a temporary difference for which
deferred taxes must be recognized in consolidation. The deferred taxes
are calculated based on the tax rate applicable in the purchaser’s tax
jurisdiction.

Under U.S. GAAP, the elimination of unrealized net income from
intercompany transactions that are eliminated from the carrying amount
of assets in consolidation give rise to a temporary difference for which
prepaid taxes must be recognized in consolidation. Contrary to IFRS, the
prepaid taxes under U.S. GAAP are calculated based on the tax rate
applicable in the seller’s rather than the purchaser’s tax jurisdiction.

“Safe Harbor” Statement under the US Private Securities Litigation
Reform Act of 1995: the matters discussed in this document may include
forward-looking statements, including statements made about our outlook,
including expected sales trends, expected shipments of tools,
productivity of our tools, purchase commitments, IC unit demand,
financial results, expected gross margin and expenses and statements
about our plans to return funds to our shareholders. These forward
looking statements are subject to risks and uncertainties including, but
not limited to: economic conditions, product demand and semiconductor
equipment industry capacity, worldwide demand and manufacturing capacity
utilization for semiconductors (the principal product of our customer
base), including the impact of general economic conditions on consumer
confidence and demand for our customers’ products, competitive products
and pricing, the impact of manufacturing efficiencies and capacity
constraints, the continuing success of technology advances and the
related pace of new product development and customer acceptance of new
products, our ability to enforce patents and protect intellectual
property rights, the risk of intellectual property litigation,
availability of raw materials and critical manufacturing equipment,
trade environment, changes in exchange rates, available cash,
distributable reserves for dividend payments and share repurchases,
risks associated with our co-investment program, including whether the
450mm and EUV research and development programs will be successful and
ASML’s ability to hire additional workers as part of the 450mm and EUV
development programs, our ability to successfully complete acquisitions,
including the Cymer transaction or the expected benefits of the Cymer
transaction and other risks indicated in the risk factors included in
ASML’s Annual Report on Form 20-F and other filings with the US
Securities and Exchange Commission.

The foregoing risk list of factors is not exhaustive. You should
consider carefully the foregoing factors and the other risks and
uncertainties that affect the business of ASML described in the risk
factors included in ASML's Annual Report on Form 20-F and other
documents filed by ASML from time to time with the SEC. ASML disclaims
any obligation to update the forward-looking statements contained herein.

1 These financial statements are unaudited.

2 Numbers have been rounded.

3 The calculation of diluted net income per ordinary share
assumes the exercise of options issued under ASML stock option plans and
the issue of shares under ASML share plans for periods in which
exercises or issues would have a dilutive effect. The calculation of
diluted net income per ordinary share does not assume exercise of such
options or issuances of shares when such exercises or issuances would be
anti-dilutive.

4 In Q4 ASML released EUR 119.5 million of its liability for
unrecognized tax benefits after successful conclusion of tax audits in
different jurisdictions, which resulted in a net tax benefit of EUR
115.8 million in the fourth quarter. The difference between the amount
released in Q4 (EUR 119.5 million) and the full year 2012 (EUR 92.5
million) relates to the additions to the liability for unrecognized tax
benefits during the first three quarters of 2012. The net release of the
liability for unrecognized tax benefits almost completely offsets the
income tax due over ASML’s income before income taxes for the year.

5 The net proceeds from issuance of shares includes an amount
of EUR 3,853.9 million related to the Customer Co-Investment Program.
The difference of EUR 125.6 million between the capital repayment of EUR
3,728.3 million and the net proceeds from issuance of shares totaling
EUR 3,853.9 million related to the Customer Co-Investment Program
relates to the capital repayment on ASML’s treasury shares which
participated in the Synthetic Share Buyback in November 2012.

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